Associated Press
LAS VEGAS — Media titans AOL Time Warner Inc. and Sony Corp. will jointly develop a home networking environment to deliver online entertainment over high-speed Internet connections.
The collaboration is aimed at developing easier ways of linking televisions, stereos, game consoles and other devices to always-on broadband networks that are now primarily used by personal computers.
"Consumers want the Internet to play a greater role in their lives, and are looking forward to the day when broadband can deliver all of a family’s home entertainment, information and communications needs over a wide variety of devices," said Steve Case, AOL Time Warner’s chairman.
Few product details or timelines were disclosed during an announcement at the Comdex trade show, but the agreements are not exclusive, and any network software and services will be developed with an open architecture.
The collaboration pits the biggest names in consumer electronics and Internet access against Microsoft Corp., which this week is releasing its Internet-enabled Xbox video console.
Under the joint program, Sony and AOL will develop home gateway technologies that will allow the sharing of connections and content among multiple devices.
The technology will employ copyright management — an important element for media companies.
AOL and Sony also plan to design an Internet browser specifically for consumer electronic devices. It also could be made available to other electronics manufacturers.
The companies will explore the possibility of AOL providing access to Sony’s networked devices in the United States.
"We believe this collaboration will offer consumers an enhanced broadband experience and create new business opportunities for the whole industry," said Kunitake Ando, Sony’s president and chief operating officer.
On Sunday, Microsoft Chairman Bill Gates outlined his vision of a "digital decade" in which consumers are always connected to the Internet through personal computers and an array of other gadgets.
The Sony-AOL deal shows Microsoft will not have the only label on next-generation devices, said Richard Doherty, an analyst at the Envisioneering Group.
"This clearly has put a new challenge to Microsoft and any broadband relationship that Sony would have with Microsoft," he said.
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